The beginning of 1st January 2026 marks a critical compliance shift under GST laws in India. Several deadlines lapse on 31st December 2025, and multiple system-driven restrictions and consequences become applicable thereafter. 

Missing these changes can result in late fees, interest, loss of ITC, suspension of GST registration, and higher tax outgo. 

This article explains all important changes effective from 1st January 2026, including some commonly ignored but high-risk compliance points. 

1. GSTR-9 / GSTR-9C Due Date Over – Late Fee Becomes Applicable 

The due date for filing GSTR-9 and GSTR-9C for FY 2024-25 is 31st December 2025. 

From 1st January 2026, these returns can still be filed but with late fees, which are turnover-based: 

GSTR-9 Late Fee Structure (FY 2022-23 onwards) 

Annual Turnover	Late Fee per Day (CGST + SGST)	Maximum Late Fee
Up to ₹5 crore	₹50 (₹25 + ₹25)	0.04% of turnover
₹5 crore to ₹20 crore	₹100 (₹50 + ₹50)	0.04% of turnover
Above ₹20 crore	₹200 (₹100 + ₹100)	0.05% of turnover

1. Late fee continues to accrue till the date of filing,
2. No waiver is automatic after the due date,
3. GSTR-9C cannot be filed without GSTR-9.

Late fee on GSTR 9C is Rs.200 per day and maximum is 0.05% of turnover.

2. ITC Blocking in GSTR-3B from 1st January 2026 

From January 2026 returns onwards, GST portal will block filing of GSTR-3B in the following cases: 

ITC Reclaim Ledger Validation–

• ITC reclaimed in Table 4(D)(1)-
• Cannot exceed:

• • Closing balance of ITC Reclaim Ledger
  • Plus ITC reversed in Table 4(B)(2) of current period 

RCM Ledger Validation– 

• RCM ITC in Table 4A(2) / 4A(3)-
  Cannot exceed: 
• • RCM liability paid in Table 3.1(d)
  • Plus available balance in RCM Ledger 

Negative ledger balance will block GSTR-3B filing.

3. Non-Furnishing of Bank Account Details = Auto Suspension of GST Registration 

As per Rule 10A: 

• Bank account details must be furnished: 
• • Within 30 days of GST registration, or 
  • Before filing GSTR-1 / IFF (whichever is earlier)

If Not Furnished 

1. GST registration will be automatically suspended;
2. Taxpayer cannot file returns or generate e-way bills;
3. Suspension continues until bank details are updated.

4. GST Returns Older Than 3 Years Cannot Be Filed 

A crucial but often ignored change: 

 GST returns older than 3 years become time-barred 

This applies to: 

1. GSTR-1,
2. GSTR-3B,
3. GSTR-4,
4. GSTR-5, 6, 7, 8,9.

If return becomes time-barred: 

1. ITC is permanently lost;
2. Annual return reconciliation becomes impossible;
3. Notices and demand proceedings may follow.

5. Check Your AATO – GST Registration May Be Mandatory 

At the start of a new year, businesses must recalculate Aggregate Annual Turnover (AATO). 

If AATO exceeds: 

• • ₹20 lakh (₹10 lakh for special category states) 
  • ₹40 lakh for goods (subject to conditions)
• GST registration becomes mandatory 

Failure to register leads to: 

1. Tax demand with interest;
2. Penalty;
3. Loss of ITC to customers.